The Ag Economic Outlook Forum took place at the University of Wisconsin-Madison on Tuesday, January 21, 2025. This event is hosted by UW-Madison’s Renk Agribusiness Institute, and I look forward to it every year. It is a great opportunity to hear from ag economists and industry insiders as they share their forecasts of what the upcoming year will bring.

Jeff Hadachek, a UW economist, kicked off the day by presenting a report on the contribution of agriculture to Wisconsin’s economy. Hadachek shared that agriculture contributes $116 billion to Wisconsin’s economy, making up 14% our state’s total output. The industry also employs nearly 10% of Wisconsin’s workforce. He explained that much of our ag sector’s continued growth can be attributed to the food processing industry, which is growing faster than our Midwestern neighbors.

Next, Paul Mitchell, the director of the Renk Agribusiness Institute, provided insight into farm income. Farm income is still slowly coming down from its all-time high in 2022. Though income is down from 2023, it is remains above the twenty-year average.

How a farm performed last year largely depended on what they produce. 2024 was a great year for livestock farmers who saw revenue rise by 8.4%. Crop farmers struggled however, experiencing a 9.2% drop in revenue along with lower yields for soybeans and corn than in 2023.

This past year also saw land values stabilize after three years of significant increases. Dane, Grant, and Lafayette counties, all in the 17th Senate District, had the highest land rental prices in the state. Despite the expensive price tag, Grant County and Lafayette County saw very small increases in average cost in 2024.

Last year at the Ag Outlook Forum, experts told us that 2023 was a historically tough year for dairy farmers, but they expected conditions to improve in 2024. Things certainly improved this past year. Milk prices rebounded from their low point in 2023 to above normal levels and the number of exports stayed high.

Looking ahead to 2025, Mitchell anticipates many trends from the past year to continue. The cost of labor will continue to rise and the cost of expenses such as feed, fertilizer, and seed will continue to fall. Overall, he expected the breakeven costs for corn and soybeans to fall. Even so, margins will continue to be very tight for our crop farmers.

Nearly every speaker at the event mentioned uncertainty surrounding federal policy in 2025, given the transition to a new presidential administration. This makes it difficult to predict crop, livestock, and dairy prices in the global market.

The Ag Economic Outlook Forum is always a great event. You can view all the videos and materials from the event here: https://renk.aae.wisc.edu/2025-wisconsin-agricultural-outlook-forum/. I encourage you to take a look.

I will continue to monitor the industry and work on policies that support the ag industry. It is so important for our communities that farmers and food producers are put in the best position to succeed.

As always, if you need assistance with any state-related matters, please call our team at the State Capitol – 608-266-0703 – or email me – Sen.Marklein@legis.wisconsin.gov. My team is ready, and willing, to help navigate your state government, clear obstacles, and receive your input.